BII, Standard Chartered renew $350mn risk participation agreement
The British International Investment and Standard Chartered have renewed a 350-million-dollar risk participation agreement to bolster the trade finance needs of SMEs and corporates across Africa and South Asia. Admir Imami, the Director and Head of Trade and Supply Chain Finance, at British International Investment, joins CNBC Africa for this discussion.
Thu, 07 Nov 2024 12:24:11 GMT
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AI Generated Summary
- The renewed agreement between BII and Standard Chartered aims to provide increased access to trade finance for SMEs and corporates in Africa and South Asia, building on a history of supporting over 10 billion in trade finance since 2013.
- By leveraging credit enhancement, the partnership enables Standard Chartered to support a wide network of banks and import activities, with a focus on key sectors like food security and climate resilience.
- BII's criteria for sector support aligns with development priorities, and the institution collaborates with local stakeholders to ensure that trade finance facilities contribute to national economic agendas.
British International Investment (BII) and Standard Chartered Bank have renewed a 350-million-dollar risk participation agreement to bolster the trade finance needs of small and medium-sized enterprises (SMEs) and corporates across Africa and South Asia. Admir Imami, the Director and Head of Trade and Supply Chain Finance at British International Investment, recently discussed the objectives and impact of this renewed partnership.
Imami highlighted that the main goal of the agreement is to provide increased access to trade finance for SMEs and corporations in Africa. Since the inception of the partnership in 2013, the collaboration has facilitated over 10 billion in trade finance in the region. Imami explained that BII provides credit enhancement to Standard Chartered, enabling them to double the limit of local banks for importing goods. This support has been extended to over 280 banks, demonstrating a commitment to enhancing credit access in Africa.
Looking ahead, Imami emphasized the potential economic growth impact of the agreement on countries in Africa and South Asia. By supporting import activities through credit enhancement, the partnership aims to promote economic development in various sectors, with a particular focus on food security and climate-related initiatives. Imami reiterated BII's willingness to take on additional risk to support imports in these critical sectors.
Imami also discussed the criteria used to determine the sectors supported by BII, emphasizing the institution's focus on development priorities like food security and climate resilience. By aligning with national development plans and working closely with local stakeholders, BII aims to ensure that its trade finance facilities contribute to the economic agenda of the countries in which they operate.
In conclusion, the ongoing partnership between BII and Standard Chartered underscores a commitment to enhancing trade finance accessibility for SMEs and corporates in Africa and South Asia. By addressing key sectors and aligning with national development priorities, the agreement is poised to support economic growth and stability in the region.
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